The cryptocurrency crash has many consequences. As the decline continues, only loyal traders are still holding onto their chips. Meanwhile, the crypto winter is driving skeptical investors to withdraw their bitcoins en masse from exchanges.
Bitcoin investors go into hibernation
The fall in the crypto sector is hurting crypto investors. After the setup of the crypto winter, more and more traders are looking for methods to recover from the dark period. This causes some of them to go into sleep mode. According to glass nodeIn early July, on-chain activity was down 13% from November highs.
The current trend is particularly affecting cryptocurrency exchange platforms. According to a report by glass node, balances on crypto exchanges have fallen by about 20% since the January 20 peak. This is the direct result of massive bitcoin withdrawals. Indeed, investors currently prefer wallets over exchanges to hold their tokens.
The crypto winter is harsh and the crypto markets are paying the price. Bitcoin fell below $20,000 last month for the first time since 2020. Although activity levels have declined in recent weeks, glass node says bitcoin consolidation will continue. As the price of BTC hovers around $21,000, HODLers are holding onto their guns and believing that the top crypto will rise again. According to Craig Johnson, a close above $26,000 or $28,000 could end the downtrend.
Binance Leads Coinbase to Become the First Exchange Platform
The crypto winter affects many exchanges. Of these, Coinbase is certainly the most affected. Indeed, in the past two years, the platform has experienced a drop of 450,000 bitcoins. Over the same period, Binance Exchange saw an increase of 300,000 bitcoins. At the start of the cryptocurrency crisis, Binance’s CEO announced that he was preparing for the fall. This keeps him confident and continues to believe in the power of bitcoin.
But it wasn’t his confidence that propelled Binance to the top. Changpeng Zhao had foreseen the fall. That is why he took measures to keep his head above water during the dark times. Collaboration with celebrities such as Khaby Lame, TikTok star and Cristiano Ronaldo has made Binance the most popular exchange.
After the collapse of the crypto markets, many exchanges have decided to temporarily stop their activities. For example, the reduction in CoinLoan withdrawals and the pause in Vauld and Coinflex withdrawals have reduced investor confidence in the exchanges. As a result, many of them now prefer to keep their bitcoins in crypto wallets rather than exchanges.
the crypto winter has spared no one. From investors to crypto exchanges, everyone is looking for solutions to survive the dark times. However, the markets have been hit the most as investors seem to prefer portfolios. However, Binance is a big winner as it is now the largest cryptocurrency exchange platform.
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The world is changing and adaptation is the best weapon for survival in this undulating universe. As a crypto community manager at the grassroots level, I am interested in everything directly or indirectly related to the blockchain and its derivatives. To share my experience and make known a field that fascinates me, there is nothing better than writing informative and relaxed articles at the same time.